Ray Washburne is selling the former headquarters of the Dallas Morning News to a data center provider after failing to secure city support for his entertainment district.
The Dallas-based developer confirmed that the 546,000-square-foot property at 508 Young Street is under contract with “one of the major data companies” but did not disclose the buyer’s name or sale price, the Dallas Morning News reported. The deal is expected to close in April.
Washburne, the co-owner of Highland Park Village, purchased the downtown property from A.H. Belo Corporation in 2019 for $28 million, or $51 per square foot. It was constructed in 1949.
“My preference was to sell it to the city, or develop an entertainment district, but I never got clarity on what they wanted to do,” Washburne said. “I wanted to do a joint venture, and I spent millions on plans, but I can’t go ahead without a firm understanding of what the city wants to do.”
Washburn had hoped a redevelopment would support Dallas’ $1.2 billion replacement of the Kay Bailey Hutchison Convention Center at 650 South Griffin Street.
“Communication has been basically zero… [and] I’m not going to wait another five years,” he told the outlet.
Dallas City Manager Kimberly Bizor Tolbert didn’t comment on the data center proposal but issued a statement saying the city is still pursuing the convention center project. The city took out a $3.7 billion bond for projects including that one and has awarded Jack Matthews’ firm Matthews a $65 million contract to build it.
Washburne has made several key acquisitions ahead of the convention center’s redevelopment, including a 152-key hotel in Dallas’ Design District. His plans for the property include a major renovation featuring the city’s largest open-air rooftop bar, operated by his restaurant group, M-Crowd. He also purchased the Greyhound Station on South Lamar Street, with redevelopment plans tied to downtown’s transformation.
— Andrew Terrell
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